Further growth in the sunflower market is expected in Ukraine

Sunseed prices in Ukraine have a high chance of further growth, despite the recent market correction due to geopolitical factors and falling oil prices. This was reported by the analytical department of the agricultural cooperative PUSK, established within the framework of the All-Ukrainian Agrarian Council (VAR).

Geopolitical news caused a wave of decline in raw material markets. The correction also affected sunflower oil. “Last week, after Trump’s statements about the possible end of the conflict with Iran, oil prices dropped sharply, and with it, stock market assets. This also pulled down the physical vegetable oil market, so sunflower oil fell by about $10-15 per ton. In the Ukrainian market, processors began to reduce purchase prices for sunflower seeds. But the market did not receive additional supply: farmers continue to restrain sales. Among the reasons are the sowing campaign and the more profitable sale of corn at the moment,” analysts note.

At the same time, fundamental factors remain positive for the sunflower market. In particular, sunflower oil currently looks undervalued. “Sunflower oil is currently cheap compared to soybean oil, although historically it should have been traded more expensive. This creates the prerequisites for a price recovery in the near term. Even without further growth in soybean oil, sunflower oil has the potential to move up. The market will also be supported by consistently high oil prices,” the PUSK believes.

The domestic sunflower market continues to experience a supply shortage.

“Sunseed supply is currently very low, and even large plants operate with minimal raw material reserves — a maximum of two weeks. Some companies are currently purchasing only 300–700 tons per week, which is very small volumes for the market. We can expect the market to return to the price level of 34–35 thousand UAH/t,” the analysts conclude.

Tags: Ukraine, prices, sunseed